Japanese two-wheeler major Honda Motorcycle and Scooter India Pvt Ltd (HMSI) is expecting its upcoming facility in Gujarat to start operations from 2016.

The Gujarat facility, coming up with an investment of around Rs 1,100 crore, is expected to start contributing to Honda’s business from the fiscal 2016-17, said Keita Muramatsu, president and CEO of HMSI.

Speaking to reporters on the sidelines of company’s launch of new motorcycle CB Unicorn 160, he said the facility would be their fourth plant in India, and the unit would have the flexibility to manufacture scooters or motorcycles according to the market demand.

The company is also planning to launch its 650 cc bike in July in India. The high-powered bike would be locally assembled with the Indian market being the initial focus.

India contributed 25 per cent to the global Honda motorcycle sales this year and would remain its priority market globally. Muramatsu said the company was planning to launch 15 new models, including seven new first-time models.

The new CB Unicorn 160, placed as a performance motorcycle for the youth, has an ex-showroom price starting from Rs 75,535.